Asia Entertainment & Resources Ltd. Announces Closing Of Rights Offering
Asia Entertainment & Resources Ltd. (“AERL”) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced the conclusion of its rights offering (the “Rights Offering”) and standby purchase of shares not sold in the Rights Offering. AERL will issue a total of 19,510,550 ordinary shares and raised $63.5 million in gross proceeds from the Rights Offering and the standby purchase. This includes 9,767,550 shares issued to holders upon exercise of their subscription rights and 9,743,000 shares issued to the standby purchasers pursuant to the terms of a standby purchase agreement.
AERL anticipates using the net proceeds of the Rights Offering, which is approximately $61.4 million following the deduction of offering expenses and costs related to the transaction, to repay outstanding indebtedness owed to certain of AERL’s shareholders. These shareholders are also standby purchasers.
About Asia Entertainment & Resources Ltd.
Asia Entertainment & Resources Ltd. is a holding company which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, and is entitled to receive all of the profits of the VIP gaming promoters from VIP gaming rooms. AERL’s VIP room gaming promoters currently participate in the promotion of four major luxury VIP gaming facilities in Macau, China, the largest gaming market in the world. One VIP gaming room is located at the top-tier 5-star hotel, the Star World Hotel & Casino in downtown Macau, and another is located in the luxury 5-star hotel, the Galaxy Macau™ Resort in Cotai, each of which is operated by Galaxy Casino, S.A. Additional VIP gaming rooms are located at the Sands Cotai Central and City of Dreams Macau, both in Cotai.Forward-Looking Statements This press release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Forward looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of AERL's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Investors and potential investors should consult all of the information set forth herein and should also refer to the risk factors set forth in AERL's Annual Report on Form 20-F filed on April 5, 2013, and other reports filed or to be filed from time to time with the Securities and Exchange Commission.
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